Mexican filmmaker Sebastián (Gael García Bernal) and his executive producer Costa (Luis Tosar) arrive in Cochabamba, Bolivia, accompanied by a cast and crew, prepared to create a film depicting Christopher Columbus's first voyage to the New World, the imposition of Columbus’ will upon the natives, and the subsequent indigenous rebellion. Cognizant of his limited budget, Costa elects to film in Bolivia, the poorest country in South America. There, impoverished locals are thrilled to earn just two dollars a day as extras in the film, and willingly engage in physical labor for set preparation. Costa saves many thousands of dollars by having underpaid extras perform tasks meant to be completed by experienced engineers.

Sebastián casts a local man named Daniel (Juan Carlos Aduviri) in the role of Atuey, the Taíno chief who led a rebellion against Columbus; and Daniel's daughter Belén in a crucial role as well. Their first encounter with Daniel gives Costa pause and causes him to oppose his casting, but Sebastian gives him the role. Sebastian is unaware that Daniel is leading demonstrations against water privatization that the Bolivian government has agreed to. Filming begins smoothly despite the alcoholism of actor Anton, (Karra Elejalde) cast as Colon (Columbus), but when Costa observes Daniel’s revolutionary involvement, he grows uneasy.

Daniel pretends to acquiesce to Costa's insistence that he stop protesting, but heedlessly continues and sustains facial wounds in a clash with the police. At this point, Costa bribes Daniel to wait for filming to conclude before participating in the rebellion again. Daniel agrees, accepting the money, but spends it on funding the protesters and remains involved, eventually becoming bloodied and imprisoned. Sebastián experiences moral conflict and begins to doubt the likelihood of the film’s completion, but is reassured by Costa, who bribes the police for Daniel’s temporary release in order to film a key scene. Upon this scene’s completion, police arrive in the Bolivian jungle to once again detain Daniel but are besieged by the film’s extras, aiding Daniel's escape.

That night, when actors Juan and Alberto see the latest news reports showing violence in Cochabamba, they become worried to the extent that they demand to leave. Sebastián begs that they stay and they hesitantly agree. The next day, as the cast and crew prepare to depart for filming, Costa is met by Daniel’s wife, Teresa, who desperately implores him to assist her in finding her daughter Belén, who has disappeared into the protests and is reportedly wounded and needing hospitalization. Teresa’s persistence wins over Costa’s conscience, and despite Sebastián's equally impassioned insistence against it, he leaves with her.

After Costa and Teresa's obstacle-laden drive through riotous Cochabamba, Belén’s life is saved, but her leg is badly injured and may never fully heal. Meanwhile, the rest of the crew is stopped by a military blockade and all except Antón leave Sebastián to journey home. The revolution ends shortly thereafter with the departure of the multinational water company, but Cochabamba is left in ruins from the conflict. Costa expresses hope that the film will be finished after all, and Daniel emotionally presents him with a vial of Bolivian water in appreciation for his life-saving efforts.

The film was selected in September 2010 over Daniel Monzón’s Cell 211 which also stars Luis Tosar, as the Spanish entry for the Best Foreign Language Film category at the 83rd Academy Awards.[5] In January 2011, it landed a spot on the list of the top nine films in its category.[6] However, it was not selected to be among the final five films nominated for the Oscar.

The film received generally positive reviews, earning an 88% approval rating on Rotten Tomatoes, but some critics pointed out potential hypocrisy as a shortcoming.[7]Roger Ebert admires the filmmakers’ courage in choosing the Bolivian water crisis as subject matter, but notes potential hypocrisy, writing, “…at the end I looked in vain for a credit saying, ‘No extras were underpaid in the making of this film.’”[8]New York Times writer Stephen Holden also raises this concern, asserting, “You can’t help but wonder to what degree its makers exploited the extras recruited to play 16th-century Indians.”[9] Also, Holden addresses Costa’s transformation, writing, “Mr. Tosar goes as far as he can to make the character’s change of heart believable, but he can’t accomplish the impossible.”[9] Contrarily, Marshall Fine of the Huffington Post views Tosar’s efforts as praiseworthy, calling him “perfect as the producer: bull-headed, charming, conniving and wheedling when he needs to be – but a man with a vision, who ultimately gets his mind changed. Tosar makes his conflict not only credible but palpable.”[10] Praising the film overall, Ann Hornaday of the Washington Post calls Even the Rain “a story in which personal connections can transcend even the most crushing structures of history and politics.”[11]

The restoration of civilian rule to Bolivia in 1982 ended decades of military dictatorships, but did not bring economic stability. In 1985, with hyperinflation at an annual rate of 25 thousand percent, few foreign investors would do business in the country.[12] The Bolivian government turned to the World Bank as a last refuge against economic meltdown. For the next 20 years, successive governments followed the World Bank's provisions in order to qualify for continued loans from the organization.[12] In order to move towards independent development, Bolivia privatised its railways, telephone system, national airlines, and hydrocarbon industry. In October 1999, the privatization of Cochabamba's municipal water supply followed, allowed by a new law and the investment of a new firm, Aguas del Tunari – a joint venture involving San Francisco-based Bechtel Corporation –. The agreement involved the firm investing in a long-envisioned dam so they dramatically raised water rates.[13]

Protests, largely organized through the Coordinadora in Defense of Water and Life, a community coalition, erupted in January, February, and April 2000, culminating in tens of thousands marching downtown and battling policem, the 2000 Cochabamba protests. In April 2000, the national government reached an agreement with the Coordinadora to reverse the privatization. The wave of demonstrations and police violence was described as a public uprising against water prices.[14]